Market Rebounds Strongly to Reclaim the 42000 Level
After the National Stabilization Fund announced it would enter the market with ample funds, Taiwan stocks showed strong rebound momentum, with bullish confidence clearly returning. The TAIEX surged over 2300 points intraday, up 5.8%, breaking above the 42000 mark to reach 42002.62 points, showing a powerful rebound. Boosted by the policy support signal, investor confidence gradually stabilized and buying poured in actively, indicating that the announcement of the National Stabilization Fund's entry has had a positive effect on market sentiment, with overall buying interest warming up significantly.
Large Electronics Heavyweights Lead the Advance
The market was led by TSMC, with large heavyweights staging a strong rebound, while MediaTek, Delta Electronics, Hon Hai and other electronics heavyweights rose in tandem, becoming a key force driving the broader market higher. Large heavyweight stocks have a certain influence on the TAIEX and are more likely to help stabilize the market when it faces major negative news and investor confidence wavers. This rebound was likewise driven by large representative companies, reflecting a return of capital to heavyweight stocks.
Past Three Interventions Focused on Large Heavyweights
Judging from the National Stabilization Fund's past market-support operations, stock selection has not been random. According to Ministry of Finance data, the past three intervention records show two major characteristics: first, selections were concentrated in Taiwan 50 constituents, favoring large-cap, highly liquid heavyweight companies; second, the number of holdings was gradually streamlined, from 19 stocks in 2020, down to 15 in 2022, and further reduced to 8 in 2025, showing that support funds have become increasingly concentrated rather than evenly dispersed. In terms of portfolio structure, the targets in the past three interventions were mainly Taiwan Mobile-type large listed companies, covering semiconductors, electronics, financials and traditional industries. Such companies typically have larger market capitalizations and trading volumes with relatively sound fundamentals. The core spirit of the National Stabilization Fund's market support is not to chase short-term hot stocks, but to stabilize the market through large, market-representative companies with relatively sound fundamentals.
Based on historical compiled data, observed selection indicators include: cash dividend yield above 3%, price-to-earnings ratio below 15 times, positive cumulative revenue growth rate for the first three quarters, and positive cumulative after-tax net profit growth rate for the first three quarters. Overall, the National Stabilization Fund's past intervention records point to a clear selection direction: focusing on large heavyweight stocks, prioritizing company size, liquidity and influence on the broader market. However, historical intervention holdings can only serve as a reference for observing government fund selection logic, and do not mean the relevant stocks are still held by the National Stabilization Fund now, nor that they will necessarily be bought again in the future.